Question No 08 Chapter No 12

Question No 08 Chapter No 12

08.Bhushan & Company purchased a Machinery on 1st April, 2015, for 54,000 and spent 6,000 on its installation. On 1st December, 2016, it purchased another machine for 30,000.
On 30th June 2017, the first machine purchased on 1st April, 2015, is sold for 36,000 and on the same date it purchased a new machinery for 80,000.
On December 1, 2018, the second machine (purchased on December 1, 2016) was also sold off for 26,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually on 31st March. Give the machinery account for
four years.

The solution of Question No 08 Chapter No 12: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
1st Apr.2015To Bank A/c 60,00031st Mar2016By Deprecation A/c(12,500 + 2,500) 6,000
    31st Mar2016By Balance C/d 54,000
   60,000   60,000
1st Apr.2016To Balance b/f 54,00031st Mar2017By Deprecation A/c(6,000 + 1,000) 7,000
1st Dec.2016To Bank A/c 30,00031st Mar 2017By Balance C/d
 3,17,500
   84,000   84,000
1st Apr 2017To Balance b/f 77,00030th Jun 2017By Deprecation A/c 1,500
30th Jun 2017To Bank A/c 80,00030th Jun 2017By Bank A/c 36,000
    30th Jun 2017By Profit & Loss A/c 10,500
    1st Mar 2018By Deprecation A/c(3,000 + 6,000) 9,000
    31st Mar2018By Balance C/d  1,00,000
   1,57,000   1,57,000
1st Apr 2018To Balance b/f 1,00,0001st Dec 2017By Deprecation A/c  
1st Dec 2017To Profit & Loss A/c 2,0001st Dec 2017By Bank A/c  
    1st Mar 2019By Deprecation A/c  
    31st Mar2019By Balance C/d  66,000
   1,02,000
   1,02,000

Working Note:
Calculation of Depreciation

Statement Showing profit or loss on the sale of Machinery
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Apr. 201560,000
Less: – Amount of Depreciation charged on the year 2015-16 
60,000 *10%* 12/126,000
Amount of Depreciation charged on the year 2016-17 
60,000 *10%* 12/126,000
Amount of Depreciation charged on the year 2017-18 
60,000 *10%* 3/121,500
Book value of an asset as of 31st Dec 201846,500
Sale Price of Machinery 36,000
Loss on the sale of the asset10,500
Statement Showing profit or loss on the sale of Machinery
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Dec. 201660,000
Less: – Amount of Depreciation charged on the year 2016-17 
30,000 *10%* 4/121,000
Amount of Depreciation charged on the year 2017-18 
30,000 *10%* 12/123,000
Amount of Depreciation charged on the year 2018-19 
30,000 *10%* 9/122,000
Book value of an asset as of 31st Dec 201824,000
Sale Price of Machinery 26,000
Loss on the sale of the asset2,000

Depreciation | Meaning | Methods | Examples

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Also, Check out the solved question of all Chapters: –

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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ISC Accounts 11 20 Image min 197x300 - Question No 08 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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